Note: Oregon Department of Energy (ODOE) filed permanent rules for the Residential Energy Tax Credit on November 18, 2014. The filed rules will take effect January 1, 2015, and will change requirements and incentive amounts for currently eligible technologies, as well as add storage gas water heaters and direct vent natural gas or propane fireplaces as eligible technologies. For more information on the new rules, refer to the '''''ODOE website'''''. The summary here reflects the rules and incentives in effect through the end of 2014.

Renewable Energy Incentives
Photovoltaic (PV) systems installed on or after January 1, 2014 are eligible for $1.90 per peak watt (W) with a maximum limit of $6,000, up to 50% of the net cost. The net cost is calculated after taking any state incentives. The amount claimed in any one tax year may not exceed $1,500 or the taxpayer's tax liability, whichever is less. Unused credits may be carried forward for five years. As of January 1, 2011, residents that are leasing a solar system are also eligible for the tax credit.

Solar space and water heating systems are eligible for a credit of $0.60 per kilowatt-hour (kWh) saved during the first year, up to $1,500.

Fuel cells are eligible for a credit of $3.00 per W of installed capacity, up to $6,000 or 50% of total costs. Fuell cell systems must have a minimum rated stack capacity of 0.5 kilowatts (kW) and a maximum rated system capacity of 10 kW.

Spa and pool heating systems are eligible for a tax credit of $0.15 per kWh saved, up to 50% of the cost, with a maximum tax credit of $1,500.

Ground source heat pump installations or upgrades and wood and pellet stoves are eligible for a credit of $0.60 per kWh saved, up to $1,500. For heat pumps, the system COP must be at least 3.3 for closed loop systems and 3.5 for direct expansion.

Wind turbine systems that produce electricity are eligible for a credit equal to the lesser of $2 per kWh produced during the first year, or $6,000. The incentive is based on actual system production. Wind systems must meet specific requirements for minimum production, tower height, and wind speed, among other requirements. Systems must produce an average of 100 kWh per month, at a minimum, towers must be a minimum of 70 feet, and systems must have a minimum annual average wind speed of 10 miles per hour at hub height.

Alternative fuel devices include facilities for mixing, storing, compressing, or dispensing fuels and equipment used to recharge or refuel alternative fuel vehicles. They are eligible for a 25% tax credit, not to exceed $750. Eligible fuels include electricity, natural gas, ethanol, methanol, propane, or other approved fuels.

Premium efficiency biomass combustion devices include wood or pellet stoves, and are eligible for a tax credit based on the efficiency improvements above the RETC minimum efficiency rating. The credit is equal to $0.60 per kWh of energy savings.

Energy Efficiency Incentives
Only technologies recognized as premium efficiency by the Oregon Department of Energy are eligible for the tax credit. The Oregon Department of Energy maintains a list of qualifying technologies. The tax credit is $0.60 per first-year energy savings in kWh up to $1,500.

Heat pump water heaters must the Northern Climate specification established by the Northwest Energy Efficiency Alliance in order to qualify for the tax credit.

History
Previously, this credit was scheduled to expire in 2012, but HB 3672 (2011) extended the expiration date of the tax credit to January 1, 2018, with the exception of the alternative fuels vehicle portion of the tax credit, which ended as scheduled January 1, 2012. Previously, the RETC offered incentives for appliances such as dishwashers, clothes washers, refrigerators, plus air conditioners and boilers. However, HB 3672 excluded these technologies as of January 1, 2012. Though eligibility for alternative fuel vehicles expired January 1, 2012, alternative vehicle infrastructure projects, including fueling or charging devices, are eligible as of January 1, 2012.